• Data intermediaries are third-party entities that collect, manage and sell data for profit.
• These intermediaries take advantage of users by collecting their data and offering services in exchange.
• Web3 developers are looking for ways to disrupt the traditional Web2.0 exchange of data in order to restore control to the user.

Data Intermediaries

Data intermediaries are third-party entities that collect, manage and sell data for profit. Examples of these include Google, Facebook, Instagram, Tinder, Uber, Strava, PayPal and WhatsApp. By accessing a user’s personal data such as locations visited or pictures posted publicly on social media platforms they can tailor advertising specifically to them and generate revenue from it. Fraudsters also use legitimate datasets gathered from these platforms to correlate the sets of data stolen by hackers and sold on the dark web for malicious purposes.

Web 2.0 Exchange

The traditional Web 2.0 exchange of a user’s data in exchange for access to digital services has often unknowingly turned the consumer into a marketable product with no real control over how their information is used or shared. This lack of fairness has become known as data asymmetry where there is an accessibility disparity between two entities where the steward of the data can unlock more value than the contributor.

Web 3 Disruption

Web3 developers have been looking at ways to disrupt this traditional model in order to restore control back into the hands of users through things like Self Sovereign ID and Data Unions which allow people to decide what is done with their own personal information rather than relying on third-parties to do it for them. However, this still remains too siloed in its current form so further disruption is needed if true power is going be restored back into users‘ hands over their own personal information .

Data Security Concerns

With more online services gathering our personal information it’s important that we realise our own responsibility when it comes protecting ourselves against potential security threats such as fraudsters using our own datasets against us . It’s also essential that we understand how much power we give away when we agree to certain online terms without being aware of what might happen with our own personal information once it’s out there .

Conclusion

It’s clear that the way we handle our own data needs significant change if real power is going be put back into users‘ hands over their own personal information instead of relying on intermediary businesses who make money off selling it off while convincing us they can be trusted with it . In order for this shift towards more equitable exchanges between users and companies , further disruption needs occur beyond currently available solutions like Self Sovereign ID or Data Unions which remain too siloed at present .